TL;DR: Virtualization makes it easy to replicate data across locations, ensuring faster recovery in case of failures; allows businesses to scale their storage and extend the lifecycle of existing equipment; reduces the need for frequent upgrades; consolidates multiple physical servers onto a single virtual one, reducing hardware needs.
The global data center storage market was worth $123.6 billion in 2023 and is expected to reach $354 billion in the next five years, growing by 16.2% a year on average during the forecast period. Several factors drive the growth of the data center storage market, the shift towards hybrid and cloud environments, including the increasing volume of data generated by businesses, the growth of virtualization, and the requirement for scalable, effective storage solutions. Technological developments such as software-defined storage, nonvolatile memory express, and hyper-converged infrastructure are enhancing the efficiency and capabilities of data center storage.
Virtualization, in particular, will be the focus here. It enables businesses to pool and abstract physical storage into a single, unified resource, allowing for more efficient use of hardware and reducing waste. Virtualized storage can allocate resources on demand, ensuring optimal usage without overprovisioning.
Powering the segment of virtual private server (VPS) hosting
The size of the server virtualization software market has increased dramatically in recent years. It was projected to grow from $9.49 billion to $10.42 billion between 2024 and 2025, equivalent to 9.8% a year on average.
Globally, the web hosting business is valued at more than $120 billion, and within that market, the VPS segment is predicted to exceed $8 billion by 2026. The more popular option within this type of hosting, managed VPS hosting, relies on virtualization to partition a physical server into multiple isolated virtual servers. Each VPS operates as a standalone server with dedicated resources, including data storage.
Virtualization allows hosting providers to maximize the use of hardware by hosting multiple virtual servers on a single physical machine. This is an important point, as many industry insiders and market analysts anticipate an increase in hardware costs. The impact of any tariffs Donald Trump has proposed will potentially be felt as early as February 2025.
Virtualization facilitates disaster recovery
Virtualization allows for quick snapshots of data and replication across multiple locations. This ensures faster recovery in case of failures. Virtual environments are resilient, enabling data to remain accessible even when parts of the system are down.
Improved scalability and data management
Virtualization provides a unified interface for managing diverse storage resources, simplifying administration. Based on predefined policies, businesses can automate data placement, access control, and lifecycle management.
Virtual storage systems allow businesses to scale their storage up or down without significant hardware investments. They facilitate seamless integration of on-premises and cloud storage, making it easier for organizations to expand their storage across multiple platforms.
It saves businesses money
By abstracting storage from specific hardware, businesses can extend the lifecycle of existing equipment and reduce the need for constant upgrades. Fewer physical devices translate into lower energy consumption and reduced cooling requirements. In 2022, US consumers spent 6.7% of the country’s GDP on energy, equivalent to $1.7 trillion. That year, energy costs amounted to just over $5,000 per consumer, up 30% from the previous year.
FAQ
How does virtualization affect businesses?
Virtualization reduces hardware needs by consolidating multiple physical servers into a single virtual one. Companies aren’t required to buy and maintain several servers.
Does virtualization impact data protection?
Yes, virtualization-specific security practices and tools create additional barriers for hackers. Integrating virtualization security practices and solutions creates an effective, multilayered cybersecurity protocol.
How does virtualization improve efficiency?
Virtualization allows for configuring, monitoring, and updating VMs from a single point, saving time installing new software, deploying updates, and implementing security patches.